Forex Card vs Cash

Unlock worry-free travel with Forex Card, your essential companion for seamless international currency management.

Since the 2019 pandemic, Indians have been at the forefront of global tourism. In 2024 alone, Indians are expected to spend $42 Billion on outbound travel. Naturally, when overseas, one will need to spend money, and the options can either be a credit card, forex card or cash.

Choosing any of these methods will have its own set of pros and cons. So, read on to find out whether it is better to carry cash or a forex card.

Cash vs Forex Card: A Detailed Comparison

The following table contains a detailed comparison between forex cards and cash. Taking a closer look at this table can help you decide which is better: a forex card or cash.

Basis	Forex Card	Cash
Meaning	Forex cards are preloaded with foreign currency of the destination of your travel	This will include the local currency of your travel destination
Best Use Case	For cash withdrawal from ATMs and shopping in abroad	Suitable mode of payment from the time of your arrival to withdrawing money from an ATM
Safety	Forex cards cannot be used without the correct PIN, which makes it quite safe, and you can block it if it gets lost or stolen	Carrying cash is the least safe option as it can get stolen or lost
Acceptability	Forex cards are accepted everywhere	It is accepted everywhere
Forex Rates	Offers a lower exchange rate as compared to buying foreign currency, and the value does not fluctuate once the card is loaded	The value of your foreign currency will fluctuate on a daily basis
Ease of Use	Forex card is very convenient to use, and you can reload it online, in real-time if you exhaust the preloaded amount	You can use cash anywhere without any hassle
Fees and Charges	When applying for a forex card, you need to pay a one-time issuance fee At the time of reloading a foreign currency, you will have to pay a reload fee	There are no fees and charges, but the value of your currency will depend on that day’s exchange rate

Which is Better: Forex Card or Cash?

Using a forex card when travelling abroad is a better option. The safety alone is one of the major reasons why it is better, especially in countries with high rates of theft. However, this does not mean that you should not carry cash on a foreign trip. Instead, use a forex card for most of your payments and withdraw cash whenever you need it.

In conclusion, travelling abroad using a forex card is much simpler than using cash. In India, YES Bank, HDFC Bank, IndusInd Bank, ICICI Bank, and Axis Bank offer Forex cards. You can also apply for an IndusInd Bank Forex Card easily on Bajaj Markets.

How much will I have to pay to get a forex card?

When applying for a forex card, you will have to pay a one-time issuance fee. In addition, every time you load your card with a foreign currency, you will be charged a reload fee. Note that the issuance and reload fees vary depending on the issuer you choose.

What are the eligibility criteria to apply for a forex card?

The eligibility criteria to apply for a forex card vary depending on the issuer. However, most issuers require an applicant to be an Indian citizen planning to travel abroad.

Are travel and forex cards the same?

Travel cards are a type of credit card with a predetermined credit limit. You can use this card to earn rewards and cashback on your international travel. However, you will have to pay interest charges and a certain transaction fee if you withdraw cash using this card.

On the other hand, a forex card is preloaded with foreign currency that you can use while travelling to a foreign destination. As compared to travel cards, these cards charge nil or negligible transaction and conversion fees.

What are the cons of carrying cash when travelling abroad?

When comparing forex cards vs cash, you will find multiple drawbacks associated with carrying cash while travelling abroad. For instance, you can lose cash, or it may get stolen.